U.S. 1-year Treasury auction on July 7 — stop-out yield 3.86%, versus 3.75% at the prior auction (up 11 bps).

UBS recommends buying the SK Hynix ADRs planned for a US listing and shorting the company’s Korean-listed shares, arguing the new ADR could trade at a premium. UBS says ADRs are more efficient and cheaper for hedge funds and some global portfolio managers who do not hold the Korean stock may instead buy the ADR. The bank views a day-one long-ADR/short-local-stock trade as an obvious, scalable strategy with limited risk and a low probability of an ADR discount.

TotalEnergies CEO said that after the incident in the Strait of Hormuz, exporting Iraqi oil would require transiting Syria, but the current security situation does not permit that.